Information Provided In Connection With Outstanding Debt Of Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2011

Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract]

Condensed Consolidating Balance Sheet at September 30, 2011

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Assets
Investments	$	38		$	29,160	$	26,301		$	—		$	55,499
Cash⁽³⁾		(70	)		640		196			—			766
Insurance and reinsurance balances receivable		—			4,883		520			—			5,403
Reinsurance recoverable on losses and loss expenses		—			17,530		(4,693	)		—			12,837
Reinsurance recoverable on policy benefits		—			952		(704	)		—			248
Value of business acquired		—			757		—			—			757
Goodwill and other intangible assets		—			4,264		553			—			4,817
Investments in subsidiaries		23,302			—		—			(23,302	)		—
Due from (to) subsidiaries and affiliates, net		664			—		—			(664	)		—
Other assets		6			7,023		1,364			—			8,393

Total assets	$	23,940		$	65,209	$	23,537		$	(23,966	)	$	88,720

Liabilities
Unpaid losses and loss expenses	$	—		$	31,696	$	6,780		$	—		$	38,476
Unearned premiums		—			5,560		1,034			—			6,594
Future policy benefits		—			3,759		617			—			4,376
Due to subsidiaries and affiliates, net		—			581		83			(664	)		—
Short-term debt		—			850		400			—			1,250
Long-term debt		—			3,360		—			—			3,360
Trust preferred securities		—			309		—			—			309
Other liabilities		190			8,429		1,986			—			10,605

Total liabilities		190			54,544		10,900			(664	)		64,970

Total shareholders' equity		23,750			10,665		12,637			(23,302	)		23,750

Total liabilities and shareholders' equity	$	23,940		$	65,209	$	23,537		$	(23,966	)	$	88,720

⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.

⁽²⁾	Includes ACE Limited parent company eliminations.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2011, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Balance Sheet at December 31, 2010

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)		ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Assets
Investments	$	47	$	26,718	$	24,642		$	—		$	51,407
Cash⁽³⁾		308		573		(109	)		—			772
Insurance and reinsurance balances receivable		—		3,710		523			—			4,233
Reinsurance recoverable on losses and loss expenses		—		16,877		(4,006	)		—			12,871
Reinsurance recoverable on policy benefits		—		959		(678	)		—			281
Value of business acquired		—		634		—			—			634
Goodwill and other intangible assets		—		4,113		551			—			4,664
Investments in subsidiaries		22,529		—		—			(22,529	)		—
Due from (to) subsidiaries and affiliates, net		564		—		—			(564	)		—
Other assets		14		7,045		1,434			—			8,493

Total assets	$	23,462	$	60,629	$	22,357		$	(23,093	)	$	83,355

Liabilities
Unpaid losses and loss expenses	$	—	$	30,430	$	6,961		$	—		$	37,391
Unearned premiums		—		5,379		951			—			6,330
Future policy benefits		—		2,495		611			—			3,106
Due from subsidiaries and affiliates, net		—		555		9			(564	)		—
Short-term debt		300		1,000		—			—			1,300
Long-term debt		—		3,358		—			—			3,358
Trust preferred securities		—		309		—			—			309
Other liabilities		188		7,394		1,005			—			8,587

Total liabilities		488		50,920		9,537			(564	)		60,381

Total shareholders' equity		22,974		9,709		12,820			(22,529	)		22,974

Total liabilities and shareholders' equity	$	23,462	$	60,629	$	22,357		$	(23,093	)	$	83,355

⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.

⁽²⁾	Includes ACE Limited parent company eliminations.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At December 31, 2010, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement Of Operations

Condensed Consolidating Statement of Operations

For the Three Months Ended September 30, 2011

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	2,581	$	1,762		$	—		$	4,343
Net premiums earned		—			2,700		1,790			—			4,490
Net investment income		—			281		283			—			564
Equity in earnings of subsidiaries		(55	)		—		—			55			—
Net realized gains (losses) including OTTI		2			28		(790	)		—			(760	)
Losses and loss expenses		—			1,782		963			—			2,745
Policy benefits		—			22		61			—			83
Policy acquisition costs and administrative expenses		14			625		556			(12	)		1,183
Interest expense		(9	)		66		(5	)		10			62
Other (income) expense		(30	)		83		34			—			87
Income tax expense		3			146		16			—			165

Net income (loss)	$	(31	)	$	285	$	(342	)	$	57		$	(31	)

Condensed Consolidating Statement of Operations

For the Three Months Ended September 30, 2010

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	1,965		$	1,330		$	—		$	3,295
Net premiums earned		—			2,031			1,391			—			3,422
Net investment income		—			253			263			—			516
Equity in earnings of subsidiaries		653			—			—			(653	)		—
Net realized gains (losses) including OTTI		(8	)		(13	)		(29	)		—			(50	)
Losses and loss expenses		—			1,202			685			—			1,887
Policy benefits		—			46			47			—			93
Policy acquisition costs and administrative expenses		16			586			448			(10	)		1,040
Interest expense		(9	)		63			(5	)		9			58
Other (income) expense		(40	)		14			1			—			(25	)
Income tax expense		3			126			31			—			160

Net income (loss)	$	675		$	234		$	418		$	(652	)	$	675

⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.

⁽²⁾	Includes ACE Limited parent company eliminations.

Condensed Consolidating Statement of Operations

For the Nine Months Ended September 30, 2011

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	6,910	$	4,832		$	—		$	11,742
Net premiums earned		—			6,863		4,693			—			11,556
Net investment income		1			825		851			—			1,677
Equity in earnings of subsidiaries		772			—		—			(772	)		—
Net realized gains (losses) including OTTI		—			32		(910	)		—			(878	)
Losses and loss expenses		—			4,521		2,713			—			7,234
Policy benefits		—			121		161			—			282
Policy acquisition costs and administrative expenses		50			1,813		1,521			(33	)		3,351
Interest expense		(27	)		199		(13	)		28			187
Other (income) expense		(92	)		115		59			—			82
Income tax expense		7			325		52			—			384

Net income (loss)	$	835		$	626	$	141		$	(767	)	$	835

Condensed Consolidating Statement of Operations

For the Nine Months Ended September 30, 2010

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)		Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Net premiums written	$	—		$	6,185	$	4,101		$	—		$	10,286
Net premiums earned		—			5,881		4,051			—			9,932
Net investment income		—			760		778			—			1,538
Equity in earnings of subsidiaries		2,036			—		—			(2,036	)		—
Net realized gains (losses) including OTTI		3			60		64			—			127
Losses and loss expenses		—			3,665		1,943			—			5,608
Policy benefits		—			112		155			—			267
Policy acquisition costs and administrative expenses		48			1,730		1,302			(27	)		3,053
Interest expense		(28	)		184		(22	)		28			162
Other (income) expense		(94	)		52		16			—			(26	)
Income tax expense		6			329		91			—			426

Net income (loss)	$	2,107		$	629	$	1,408		$	(2,037	)	$	2,107

⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.

⁽²⁾	Includes ACE Limited parent company eliminations.

Condensed Consolidating Statement Of Cash Flows

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 30, 2011

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Net cash flows from operating activities	$	652		$	1,219		$	1,807		$	(680	)	$	2,998

Cash flows from (used for) investing activities
Purchases of fixed maturities available for sale		—			(9,434	)		(10,134	)		—			(19,568	)
Purchases of fixed maturities held to maturity		—			(282	)		(3	)		—			(285	)
Purchases of equity securities		—			(149	)		(140	)		—			(289	)
Sales of fixed maturities available for sale		7			7,366			6,950			—			14,323
Sales of equity securities		—			347			17			—			364
Maturities and redemptions of fixed maturities available for sale		—			1,234			1,369			—			2,603
Maturities and redemptions of fixed maturities held to maturity		—			724			242			—			966
Net derivative instruments settlements		(2	)		(19	)		88			—			67
Capital contribution to subsidiary		(385	)		—			—			385			—
Advances (to) from affiliates		(90	)		—			—			90			—
Acquisition of subsidiaries (net of cash acquired of $81)		—			(357	)		(37	)		—			(394	)
Other		—			(469	)		152			—			(317	)

Net cash flows from (used for) investing activities		(470	)		(1,039	)		(1,496	)		475			(2,530	)

Cash flows from (used for) financing activities
Dividends paid on Common Shares		(342	)		—			—			—			(342	)
Common Shares repurchased		—			—			(168	)		—			(168	)
Net proceeds from issuance (repayment) of short-term debt		(300	)		(150	)		400			—			(50	)
Proceeds from share based compensation plans		82			—			—			—			82
Advances (to) from affiliates		—			35			55			(90	)		—
Dividends to parent company		—			—			(680	)		680			—
Capital contribution from parent		—			—			385			(385	)		—

Net cash flows from (used for) financing activities		(560	)		(115	)		(8	)		205			(478	)

Effect of foreign currency rate changes on cash and cash equivalents		—			2			2			—			4

Net increase (decrease) in cash		(378	)		67			305			—			(6	)
Cash – beginning of period⁽³⁾		308			573			(109	)		—			772

Cash – end of period⁽³⁾	$	(70	)	$	640		$	196		$	—		$	766

⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.

⁽²⁾	Includes ACE Limited parent company eliminations.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2011 and December 31, 2010, the cash balance of one or more entities was negative; however, the overall Pool balances were positive.

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended September 30, 2010

(in millions of U.S. dollars)


	ACE Limited (Parent Guarantor)			ACE INA Holdings Inc. (Subsidiary Issuer)			Other ACE Limited Subsidiaries and Eliminations⁽¹⁾			Consolidating Adjustments⁽²⁾			ACE Limited Consolidated
Net cash flows from operating activities	$	90		$	1,432		$	1,253		$	—		$	2,775

Cash flows from (used for) investing activities
Purchases of fixed maturities available for sale		—			(10,785	)		(13,105	)		—			(23,890	)
Purchases of fixed maturities held to maturity		—			(513	)		(1	)		—			(514	)
Purchases of equity securities		—			(98	)		(238	)		—			(336	)
Sales of fixed maturities available for sale		7			7,877			10,412			—			18,296
Sales of equity securities		—			8			424			—			432
Maturities and redemptions of fixed maturities available for sale		—			1,393			1,273			—			2,666
Maturities and redemptions of fixed maturities held to maturity		—			781			150			—			931
Net derivative instruments settlements		(2	)		(18	)		31			—			11
Advances (to) from affiliates		162			—			—			(162	)		—
Other		—			(198	)		(66	)		—			(264	)

Net cash flows from (used for) investing activities		167			(1,553	)		(1,120	)		(162	)		(2,668	)

Cash flows from (used for) financing activities
Dividends paid on Common Shares		(323	)		—			—			—			(323	)
Proceeds from share based compensation plans		41			—			—			—			41
Advances (to) from affiliates		—			4			(166	)		162			—

Net cash flows from (used for) financing activities		(282	)		4			(166	)		162			(282	)

Effect of foreign currency rate changes on cash and cash equivalents		—			1			(8	)		—			(7	)

Net decrease in cash		(25	)		(116	)		(41	)		—			(182	)
Cash – beginning of period⁽³⁾		(1	)		400			270			—			669

Cash – end of period⁽³⁾	$	(26	)	$	284		$	229		$	—		$	487

⁽¹⁾	Includes all other subsidiaries of ACE Limited and intercompany eliminations.

⁽²⁾	Includes ACE Limited parent company eliminations.

⁽³⁾

ACE maintains two notional multicurrency cash pools (Pools) with a third-party bank. Various ACE entities participate in one or the other of the Pools, pursuant to which credit and debit balances in individual ACE accounts are translated daily into a single currency and pooled on a notional basis. Individual ACE entities are permitted to overdraw on their individual accounts provided the overall Pool balances do not fall below zero. At September 30, 2010 and December 31, 2009, the cash balance of one or more entities was negative; however, the overall Pool balance was positive.